Scotiabank ups target to $83, (potentially to $175)Latest Research (March 24, 2023):OUR TAKE: Positive. We came away from BBD’s investor day incrementally positive on an impressive turnaround story with our 2025E improving on better-than-expected guidance raise, which drives our target to C$83 (was C$80). We have baked in some conservatism in our estimates relative to a “potentially conservative” guidance, reflecting our cautious macro view in light of the ongoing uncertainties. While the double layer of cushion implies downside risk to our outlook should be relatively limited in a dire macro scenario, the upside risk could be quite significant for the stock if 2025 targets do come to fruition. Assuming a reasonable 8x-10x EV/EBITDA multiple for a nearly investment-grade-rated business, BBD’s 2025 targets (at lowend) would imply an equity valuation of C$130 (at 8x) to C$175 (at 10x) per share, a significant 105%-175% potential return over the next two years. We believe 2025 may not be the end game as there could be earnings upside, shareholder returns or even strategic actions beyond 2025. Thus, we think the risk/reward is highly attractive for investors with a longer-term horizon. We re-iterate our Sector Outperform rating.